Suretyship
Quick Answer
What is Suretyship?
A suretyship is a personal guarantee making you personally liable for your business’s debt if the business cannot pay.
Suretyship explained
Bank funding for small companies almost always demands directors’ suretyships, which defeats the limited liability of the Pty Ltd for that debt. Read the scope – some are unlimited.
Who it applies to: Directors signing for business funding.
Cost: Your personal estate stands behind the debt.
Related terms and guides
Official source: Gov.za
Always verify this information with official South African government sources. Rules, fees and thresholds change. Check SARS, CIPC, the Department of Employment and Labour or gov.za before you act.
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Last reviewed: September 2026 by the BizAnswers editorial team. How we write and check our guides.